Chivo Sale Negotiations Advance as Bitcoin Strategy Remains Politically Contested
The International Monetary Fund has confirmed that El Salvador is in advanced negotiations to sell its state-run Chivo Bitcoin wallet, marking a significant development in the country’s ongoing discussions with international lenders over its Bitcoin policy.
In a formal statement, the IMF said that negotiations for the sale of the government-operated Chivo e-wallet are “well advanced”, while broader talks on El Salvador’s Bitcoin-related activities remain ongoing. The clarification follows a prior financing agreement under which the IMF approved $120 million as part of a larger $1.4 billion loan package, contingent on policy adjustments related to Bitcoin.
Under the terms disclosed earlier, El Salvador agreed to scale back public sector involvement in Bitcoin, limit government-led crypto economic activity, and wind down participation in the Chivo wallet, while keeping Bitcoin use optional for the private sector. The IMF has declined to comment on specific transaction details surrounding the Chivo sale.
Despite these commitments, the country’s Bitcoin stance remains unclear. While IMF officials previously indicated that no new Bitcoin purchases were made after December 2024, El Salvador’s Bitcoin Office has continued to publicly announce acquisitions, including more than 1,000 BTC reportedly added in November.
President Nayib Bukele has repeatedly stated that Bitcoin accumulation will not stop, reaffirming a policy of purchasing at least one Bitcoin per day. As of the latest disclosed data, El Salvador holds approximately 7,500 Bitcoin, valued near $660 million at current prices.
The contrast between IMF-backed fiscal conditions and political messaging supporting continued Bitcoin buying highlights ongoing tension over the country’s crypto strategy. The potential sale of Chivo may signal partial compliance, but questions remain about how fully El Salvador will align with the IMF agreement going forward.
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